Question 1

Which of the following provides an answer to these questions: What is our business? Who are our customers? What do our customers value? What should our business be?
A)a business portfolio
B)a mission statement
C)objectives and goals
D)operational strategies
E)marketing and functional strategies

Accepted Answer

A mission statement typically answers these fundamental questions about a business: what the business does, who the target audience is, why the business does what it does, and how it plans to execute its mission.

Question 2

Mountain Home Farms is now using the product/market expansion grid to develop strategies.The owners of the company have most likely found the grid to be quite useful for identifying .
A)growth opportunities
B)key customers
C)new products
D)suppliers
E)target markets

Accepted Answer

The product/market expansion grid is a tool that helps companies identify growth opportunities by considering new products and new markets.

Question 3

Favorite Memories specializes in serving gift shoppers that major competitors overlook and ignore.Which of the following best describes Favorite Memories?
A)market seeker
B)market nicher
C)full market coverer
D)market follower
E)market challenger

Accepted Answer

Favorite Memories is a market nicher as it focuses on serving a specific group of gift shoppers that larger competitors do not cater to.

Question 4

Starbucks Coffee has recently begun selling and playing compilation CDs and is supporting its own XM satellite radio station.This represents which strategy for growth?
A)market development
B)partner development
C)diversification
D)product development
E)market penetration

Accepted Answer

The company is diversifying its product line by adding compilation CDs and supporting its own XM satellite radio station rather than just solely focusing on coffee products. This represents a diversification strategy for growth.

Question 5

Berman Electric,a chain of 18 appliance stores,has a marketing organization in which specialists head different marketing activities.What is this type of organization called?
A)organic
B)market
C)geographic
D)functional
E)product

Accepted Answer

This type of organization is called a functional organization, where specialists are grouped by their specific function or expertise.

Question 6

After management has identified the key businesses making up its company,what is the next step in portfolio analysis?
A)assessing the attractiveness of its SBUs
B)identifying SBUs
C)deciding whether to harvest any businesses
D)completing short- range planning
E)identifying businesses in which to invest

Accepted Answer

Once management has identified the key businesses making up its company, the next step in portfolio analysis is to assess the attractiveness of each strategic business unit (SBU). This allows the company to prioritize its investments and allocate resources more effectively based on the potential for growth and profitability of each SBU.

Question 7

Which of the following can be a company division,a product line within a division,or sometimes a single product or brand?
A)a market
B)a value delivery network
C)the BCG
D)an SBU
E)a PLC

Accepted Answer

SBU (Strategic Business Unit) can be a company division, a product line within a division, or sometimes a single product or brand.

Question 8

Walmart,the world's largest retailer,has successfully launched its stores in Mexico,Canada,the U.K. ,Germany,and other nations.This is an example of how Walmart is pursuing as a growth strategy.
A)geographic market development
B)diversification
C)product development
D)market penetration
E)demographic market development

Accepted Answer

Walmart is expanding its market geographically by opening stores in different countries. This shows that the company is pursuing a geographical market development strategy.

Question 9

If Under Armour,the successful maker of moisture- wicking shirts and shorts,considered introducing a line of Under Armour fitness equipment,the company would be considering .
A)market penetration
B)diversification
C)market development
D)product adaptation
E)marketing controls

Accepted Answer

Diversification involves introducing new products into new markets, which is exactly what Under Armour would be doing by introducing fitness equipment. Market penetration and market development involve selling existing products in existing or new markets, respectively. Product adaptation involves making changes to existing products to better meet the needs of specific markets. Marketing controls refer to the methods and tools a company uses to monitor and evaluate its marketing strategies and goals.

Question 10

Refer to the scenario below to answer the following questions.
Fun- Spot Fun Park began as a small amusement park in 1985.With nothing more than a merry- go- round,a slide,pony rides,and an ice cream stand,Fun- Spot grew into a popular family attraction with 20 rides,a restaurant,and an outdoor performing arts theater.
"My wife,Gail,and I didn't know what we were getting into," commented Ron Hart,the owner."We just knew that weekenders coming to the lakes in our rural area represented an untapped market."
Today,thousands of visitors flock to Fun- Spot: families,children of all ages,and even senior citizens who enjoy strolling through the gardens and arbor.
"There's something here for everyone," Gail Hart said with a smile."Dozens of companies hold annual company picnics here.We have welcomed class field trips.And we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in."We really don't know why we've been so successful.There is nothing else like Fun- Spot Fun Park in the area.We were just lucky."
"I think it's the ambience of the park that has brought so many visitors," Gail added."We provide a 'total package' of entertainment.Plus,we try to change our rides and various attractions from time to time for variety"
Ron and Gail Hart admitted that making every visitor happy is a priority."That has always been our philosophy," they said."Like it says on the entrance to the park,'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."
-Ron and Gail plan to lower prices in an effort to encourage customers to stay longer,visit more often,and spend more money during each visit.What type of strategy are Ron and Gail planning?
A)market penetration
B)customer development
C)diversification
D)product development
E)market development

Accepted Answer

Ron and Gail plan to lower prices in order to encourage customers to visit more often and spend more money during each visit. This is an example of market penetration strategy aimed at increasing market share within the existing market by attracting more customers.

Question 11

Serengeti makes lightweight sunglasses with 100 percent UV protection for people who love to hunt,hike,and bike ride.Its long- term plans include the development of lenses that,in addition to protecting users from UV rays,will also have effective water- sheeting action to reduce lens spotting.This new feature will be valuable to people who fish.In terms of a SWOT analysis,the company believes it can use the of its reputation as a sunglass manufacturer for a specialized market in combination with its current manufacturing facilities and labor force to enter this new market.
A)opportunities
B)strengths
C)threats
D)trends
E)weights

Accepted Answer

The company's reputation as a sunglass manufacturer for a specialized market and its current manufacturing facilities and labor force are considered strengths in a SWOT analysis.

Question 12

In the four Ps of the marketing mix,design,packaging,services,and variety all fall under the category of _.
A)place
B)promotion
C)price
D)position
E)product

Accepted Answer

The four Ps of the marketing mix are product, price, place, and promotion. Design, packaging, services, and variety are all elements that relate to the product aspect of the marketing mix. Therefore, the best choice is E, which represents product.

Question 13

The collection of businesses and products that make up a company is called its .
A)mission statement
B)strategic business unit
C)business portfolio
D)strategic plan
E)operational factor

Accepted Answer

A business portfolio refers to the collection of businesses and products that make up a company. A mission statement defines the company's purpose and objectives, a strategic business unit is a division within a larger company with its own strategy and business model, a strategic plan outlines how the company will achieve its objectives, and operational factors refer to the day-to-day activities and processes of the company.

Question 14

The four possible strategies that can be pursued for each SBU are building,holding,_ ,and .
A)promoting;selling
B)diversifying;penetrating
C)downsizing;expanding
D)developing;growing
E)harvesting;divesting

Accepted Answer

The strategy options for each SBU are building (investing to grow the business), holding (maintaining current investment levels and market position), harvesting (reducing investment and maximizing profits), and divesting (selling off or liquidating the business). Option E, harvesting and divesting, are two complementary strategies that are often pursued when a business unit is no longer a good strategic fit or is no longer profitable. These strategies allow the parent company to reallocate resources to more promising SBUs.

Question 15

Which of the following is NOT a step in the strategic planning process?
A)evaluating all members of the value chain
B)setting company objectives and goals
C)designing the business portfolio
D)planning marketing and other functional strategies
E)defining the company mission

Accepted Answer

Evaluating all members of the value chain is not a step in the strategic planning process. The other options listed (setting company objectives and goals, designing the business portfolio, planning marketing and other functional strategies, defining the company mission) are all steps in the strategic planning process.

Question 16

Which of the following involves evaluating each market segment's attractiveness and selecting one or more segments to enter?
A)market segmentation
B)differentiation
C)market targeting
D)positioning
E)servicing

Accepted Answer

Market targeting involves evaluating each market segment's attractiveness and selecting one or more segments to enter. Market segmentation involves dividing a larger market into smaller groups of people with similar wants and needs, differentiation is the process of creating a unique product or service to stand out from competitors, positioning is the process of creating a distinct image or identity for a product or service in the minds of consumers, and servicing refers to the act of providing ongoing support and assistance to customers after making a purchase.

Question 17

Emerson Studios,a chain of 25 portrait stores in five states,has organized its marketing organization into groups headed by a sales manager,an advertising manager,and a customer- service manager.What type of organization is this?
A)functional
B)customer
C)geographic
D)product
E)market

Accepted Answer

Emerson Studios has organized its marketing organization by functions, with different managers responsible for sales, advertising, and customer service. This is a common way to structure organizations and allows for specialized expertise in each area.

Question 18

Refer to the scenario below to answer the following questions.
Fun- Spot Fun Park began as a small amusement park in 1985.With nothing more than a merry- go- round,a slide,pony rides,and an ice cream stand,Fun- Spot grew into a popular family attraction with 20 rides,a restaurant,and an outdoor performing arts theater.
"My wife,Gail,and I didn't know what we were getting into," commented Ron Hart,the owner."We just knew that weekenders coming to the lakes in our rural area represented an untapped market."
Today,thousands of visitors flock to Fun- Spot: families,children of all ages,and even senior citizens who enjoy strolling through the gardens and arbor.
"There's something here for everyone," Gail Hart said with a smile."Dozens of companies hold annual company picnics here.We have welcomed class field trips.And we even had one wedding here at the park!"
"Here's the funny thing," Ron chimed in."We really don't know why we've been so successful.There is nothing else like Fun- Spot Fun Park in the area.We were just lucky."
"I think it's the ambience of the park that has brought so many visitors," Gail added."We provide a 'total package' of entertainment.Plus,we try to change our rides and various attractions from time to time for variety"
Ron and Gail Hart admitted that making every visitor happy is a priority."That has always been our philosophy," they said."Like it says on the entrance to the park,'We're here to make you happy!' And we've always been able to deliver on that because we've never allowed ourselves to grow too big too quickly."
-Fun- Spot's mission is .
A)market- oriented
B)too focused on profits
C)too specific
D)product- oriented
E)technology- oriented

Accepted Answer

Fun-Spot's mission is market-oriented because it focuses on satisfying customer needs and providing a total package of entertainment, as well as adapting to changes to keep visitors happy.

Question 19

The process of customer- driven marketing involves which of the following?
A)analysis;targeting;implementation;control
B)problem identification;information search;decision;implementation
C)product;price;promotion;adaptation
D)market segmentation;market targeting;differentiation;positioning
E)marketing analysis;planning;implementation;feedback

Accepted Answer

The process of customer-driven marketing involves market segmentation, market targeting, differentiation, and positioning. This refers to identifying specific groups of customers with varying needs and characteristics, selecting which of those groups to target, creating unique products or marketing messaging to stand out from competitors, and positioning a brand in the minds of those customers. This process ensures that marketing efforts are tailored to the needs and desires of specific customer segments, resulting in more effective and efficient marketing campaigns.

Question 20

are low- growth,high share businesses or products.They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment.
A)Dogs
B)Stars
C)Cash cows
D)Cats
E)Question marks

Accepted Answer

The description given perfectly matches the characteristics of Cash cows.

Quiz 2: Company and Marketing Strategy: Partnering to Build Customer Relationships

Which of the following provides an answer to these questions: What is our business? Who are our customers? What do our customers value? What should our business be?

Mountain Home Farms is now using the product/market expansion grid to develop strategies.The owners of the company have most likely found the grid to be quite useful for identifying .

Favorite Memories specializes in serving gift shoppers that major competitors overlook and ignore.Which of the following best describes Favorite Memories?

Starbucks Coffee has recently begun selling and playing compilation CDs and is supporting its own XM satellite radio station.This represents which strategy for growth?

Berman Electric,a chain of 18 appliance stores,has a marketing organization in which specialists head different marketing activities.What is this type of organization called?

After management has identified the key businesses making up its company,what is the next step in portfolio analysis?

Which of the following can be a company division,a product line within a division,or sometimes a single product or brand?

Walmart,the world's largest retailer,has successfully launched its stores in Mexico,Canada,the U.K. ,Germany,and other nations.This is an example of how Walmart is pursuing as a growth strategy.

If Under Armour,the successful maker of moisture- wicking shirts and shorts,considered introducing a line of Under Armour fitness equipment,the company would be considering .

In the four Ps of the marketing mix,design,packaging,services,and variety all fall under the category of _.

The collection of businesses and products that make up a company is called its .

The four possible strategies that can be pursued for each SBU are building,holding,_ ,and .

Which of the following is NOT a step in the strategic planning process?

Which of the following involves evaluating each market segment's attractiveness and selecting one or more segments to enter?

Emerson Studios,a chain of 25 portrait stores in five states,has organized its marketing organization into groups headed by a sales manager,an advertising manager,and a customer- service manager.What type of organization is this?

The process of customer- driven marketing involves which of the following?

are low- growth,high share businesses or products.They generate a lot of cash that the firm uses to pay its bills and support other SBUs that need investment.